State aid and remediation of contaminated sites in Finland. Anna-Maija Pajukallio CF, Bilbao

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1 State aid and remediation of contaminated sites in Finland Anna-Maija Pajukallio CF, Bilbao 1

2 Content of the presentation Some background information Waste management works Oil Conpensation Fund Some conclusions 2

3 Contaminated sites in Finland Contaminated 8 % Clean or cleaned 7 % Inventories: early 1990 s and Updating going on Total amount of sites % risk actvity Risk activity 85 % 3

4 Number of sites remediated 430 (2003): total costs of remediation M Service stations, oil spills 0 % 4 % 4 % 2 % 17 % Heating of buildings Industrial sites 8 % 7 % 1 % Sawmills, impregnation plants Scrap yards, depots, traffic Greenhouses 57 % Shooting ranges Other Landfills, soil replacement 4

5 Future costs of remediation Cost estimate for coming 20 years M (60 M / year) Service stations, oil spills L Heating of buildings Industry Saw mills, impregnation plants Scrapyards, depots, traffic Greenhouses Shooting ranges Other Land fills, soil replacement 5

6 Liability to remediate Environmental Protection Act (86/2000) 1st: polluter 2nd: property owner 3rd: local municipalities if the costs increase so that they become excessive, the local authority shall establish a need for and carry out soil treatment for these cases were the polluter cannot be assigned, it is possible to get financing from the state budget 6

7 Who pays? Current shares: 2/3 private sector 1/3 public sector (municipalities, state) Industry s share is 40 % The Environmental Damage Insurance Act (81/1998) garantees full compensation for environmental damage in cases where those liable for compensation are insolvent, or the liable party cannot be indentified, covers costs of rehabilitating abandoned contaminated sites only clean-up costs which has occurred after (= 0) 7

8 Types of state funding No large-scoped environmental fund The state budget Environmental works Fundingfor orphansites 3 4 M /year Funding for development and demonstration projectes ended 2002 The Oil Pollution Compensation Fund Cleaning of orphan sites contaminated by oil About 2 M /year 8

9 State Budget waste management works State budget money for remediation of orphan sites. 3 4 million euros/year Waste Act (1072/1993), section 35 State participation in waste management work If waste in the environment or some other discarded object or substance causes hazard, harm or other consequence as referred to in section 7 of the Environmental Protection Act (soil contamination prohibition), and the costs of work or measures necessary to prevent or eliminate this are, or may prove, unreasonable for the municipal waste management system, the regional environment centre can, having so agreed with the relevant municipality carry out the work or measure under the State budget as waste management work or otherwise contribute to the costs referred to above. Environment centre either has the site remediated (full competition of constructors) or the other party can also do it. 9

10 Some facts (2003) 275 (partially) state-funded remediation projects completed Main activities: old landfills, saw mills, impregnations plants, scrap yards and repair shops Gas stations mainly funded by Oil Compensation Fund Share for state funding 5 90 % Very often between state and the other party The other party is in most cases municipality, but it can also be a private person or an enterprise Costs: >1 M average Unpleasant facts: Lack of appropriate funding Budget frames demand cutting down the already too modest funding 10

11 Remediations (Pyy & Fredriksson ) Remediation decisions Waste management works

12 REMEDIATION PROGRAMME FOR Planned projects Finnish Environmental Institute gathers the information from the regional centres (Pyy & Fredriksson ) landfills forest industry shooting ranges repair shops and scrap yards gas stations 24 metal indusrty cleaners chemical industry 80 mineral industry market gardens 12

13 Criteria Soil is proved to be contaminated AND the contamination threatens areas in need for special care, like nature conservation areas OR an (important) groundwater body or surface-water body is endangered OR contamination poses a risk for human health in present land-use AND the pollution activity no longer exists AND the polluter is not known or can not be held liable or can not bear the costs AND the profit that follows from the remediation is not noticeable for the liable part AND the municipality or private part takes party in financing the costs AND the state funding is argued by for instance because of the minor ability of the municipality to pay the costs 13

14 Prioritization of waste management works A new prioritizing model (KUPPI) has been developed. It prioritizes the contaminated soils in their remediation order according to Harmful substances Exposure through soil, air and water Diffusion Social pressure If the site gets over 70 points from the model and it fullfills the before mentioned criteria it is considered as a potential waste management work 14

15 Oil Pollution Compensation Fund (OPCF) The funds of the Oil Pollution Compensation Fund can be used for cleaning up abandoned sites, which have been contaminated by oil. ca 2 million/year Based on the Law on OPCF Oil protection fee (0,5 /tn) collected from oil importing enterprises Managed by the Ministry of the Environment A board handles applications SOILI programme (since 1996) an agreement between petroleum industry enterprises and public bodies on the remediation of polluted decommissioned service station sites (public and private part) 15

16 SOILI-programme Public part (orphan sites): application period was closed applications submitted Remedial action has been taken at 350 sites Criteria: The gas station has been closed (some years ago) The real estate does not belong any more to the owner of the gas station The polluter is not known or can not be held liable or can not bear the costs according to the law The liability of the property owner is excessive 16

17 Some conclusions Funding mechanisms do exist in Finland But not enough money to do the job The money that we have is used rather eco-effectively SOILI organization Environmental centres Some of the criteria for waste management work are rather hard to fulfill especially taking part in financing SFD?? 17

18 Thank You! 18